José Ignacio López, president of Anif, said the bulk of the fiscal adjustment in the government’s Ley de Rescate Fiscal should come from spending cuts, with new revenue playing a complementary role. The government plans to file the bill within days.
The planned cut comes after the 2027 budget, the PGN, of 634.9 trillion pesos was approved by decree.
Revenue and growth trade-off
He argued that income or greater taxation elements must therefore be brought into the discussion.
Any tax measures, he said, should minimise their effect on economic growth. He warned that reform after reform has penalised or heavily burdened the formal sector and entrepreneurship. He said that is why the country has been growing at rates that do not solve the fiscal situation.
Next steps in the plan
Minister Miguel Gómez has said the Ley de Rescate Fiscal is the second step of the adjustment plan. The third will be the Plan Nacional de Desarrollo, whose bases must be presented to the Consejo Nacional de Planeación by November 15.
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The initiative reportedly also contemplates eliminating entities and reducing exemptions. López said there has to be a compromise between how much more income is sought and how that cost is minimised, so as to keep incentives for the formal sector and companies intact.
Source: Anif
